The group stated that its index of area business activity fell to 54.9 in February on a seasonally adjusted basis from 58.5 in January. In January, the index fell to 58.5 from 60.8 in December. A reading above 50 indicates expansion in the manufacturing sector and a reading below 50 indicates a contraction.
The new orders index fell to 54.9 in February from 63.7 in January; the prices paid index fell to 71.6 in February from 75.3; the supplier deliveries index rose to 59.2 in February from 57.8; and the employment index rose to 54.9 in February from 50.2.
The Chicago index is based on a survey of purchasing managers in northern Illinois and northwestern Indiana, one of the country's largest industrial regions.
